Electric Boat’s submarine production buildup is sending ripple effects across Connecticut’s manufacturing sector, prompting suppliers like Chapco Inc. and Collins & Jewell to expand facilities and add capacity to keep pace with surging demand.
Contract manufacturing and metal fabrication company Chapco Inc. is investing $7.5 million to consolidate its operations into a 151,159-square-foot industrial and office building in Deep River, relocating from three smaller facilities in Chester.
The move is aimed at supporting anticipated growth, driven in part by rising demand from General Dynamics Electric Boat, which currently accounts for about 20% of Chapco’s revenue.
The Groton-based submarine manufacturer has been expanding hiring and production to meet increasing demand from the U.S. Navy, generating ripple effects across its supplier network. Chapco President and CEO Brian Weinstein said he expects the company’s business with Electric Boat to grow significantly, making additional capacity and operational efficiency key factors behind the relocation.
“We haven’t seen a tremendous amount of growth recently, but we’re seeing a lot more opportunities,” Weinstein said. “And Electric Boat right now is our largest customer. So, we are certainly looking to expand in shipbuilding and the maritime industrial base, as well as aerospace and defense as a whole. We’re just seeing a lot of opportunities and figured the time was right to buy this building and plan for some expansion and growth.”
Electric Boat’s continued buildup has provided a significant lift to manufacturers and suppliers that support its shipyards in Groton and at Quonset Point, Rhode Island, where the company is increasing production of both Virginia-class attack submarines and the Columbia-class ballistic missile submarine program.
After hiring thousands of employees annually in recent years, the company recently announced plans to add 8,000 workers across its operations in 2026 — a roughly 32% increase from its current workforce of about 25,000.
That growth is expected to continue driving demand for parts, materials and specialized manufacturing work throughout the regional supply chain.
“When you see that growth of Electric Boat, think about it as a ripple effect in a pond, the growth of their supply chain is necessary as well to keep up with that demand,” said Chris DiPentima, president and CEO of the Connecticut Business & Industry Association.
Connecticut’s deep bench of manufacturers capable of supplying defense contractors helps anchor those larger companies in the state, DiPentima added.
“We’ve heard from dozens, if not hundreds, of manufacturers that Electric Boat’s growth is driving their growth and more investments that they’re making,” DiPentima said.
According to Electric Boat data, 350 Connecticut companies that directly support submarine manufacturing received $1.6 billion in related contracts in the five years leading up to 2026, up from $1.1 billion in the prior five-year period — a 45% increase.
Elbow room
Chapco began leasing the 1914-vintage mill building on 6.3 acres at 12 Bridge St. in November, before Electric Boat publicly outlined its 2026 hiring plans. Weinstein said industry contacts and other suppliers had indicated the submarine manufacturer was preparing for a significant production ramp-up.
“It's just obvious to us that this business will be around for a while and that we could be a really valuable supplier to them as well as the entire submarine and marine maritime industrial base,” Weinstein said.
Electric Boat is not the only factor influencing Chapco’s outlook. Large manufacturers are increasingly shifting portions of their supply chains to U.S.-based producers, a trend Weinstein said is emerging across multiple industries. He attributed the movement to tariffs and ongoing uncertainty in international markets.
Beyond Electric Boat, Chapco serves a diverse customer base. It manufactures exterior casings for EV charging stations and data center equipment, while supplying power generation plants and original equipment manufacturers. Chapco has even produced shells for Dippin’ Dots vending machines.
The relocation will move the roughly 62-year-old company from about 70,000 square feet spread across three Chester buildings into a single, substantially larger facility, providing additional room for its 60 employees and future expansion.
As of early February, Chapco had moved six marketing and sales employees into the new building and was refurbishing other areas ahead of installing heavy machinery. The company expects to be fully operational in Deep River by early April.
Chapco Inc. recently relocated to this 151,159-square-foot industrial building in Deep River. HBJ Photo | Michael Puffer
Weinstein said he is under contract to purchase the property after March 1 for $3.25 million. The timing allows the acquisition to occur after the state’s Transfer Act sunsets. The law, which governs environmental remediation obligations tied to certain commercial and industrial property sales, has long been viewed by some property owners and investors as a barrier to transactions involving industrial sites.
Under new regulations scheduled to take effect March 1, Connecticut will transition from the Transfer Act’s transaction-based cleanup framework to a release-based system. As a result, environmental investigation and remediation requirements will generally be triggered by evidence of a hazardous material release rather than simply by a property sale or transfer.
The delayed closing also gives Weinstein time to sell a Chester manufacturing building and apply the proceeds toward the Deep River acquisition through a tax-deferred 1031 exchange.
In addition to the real estate purchase, Weinstein plans to invest about $2.5 million in new machinery. Chapco has applied to Connecticut’s Strategic Supply Chain Initiative grant program to help offset those costs and has committed to adding 10 to 15 jobs over the next three years.
Mark R. Berkowitz, of ORL Commercial, represented the current owner of 12 Bridge St., a building previously occupied by firearms manufacturer Smith & Wesson. Berkowitz is also marketing one of the Chester properties Chapco is leaving behind, an 18,659-square-foot industrial building at 10 Denlar Drive.
"There aren't many 150,000-square-foot buildings in the area that would have allowed Chapco to consolidate operations," Berkowtiz said. "It's an older building, but it is in excellent condition."
Additional growth
Chapco is not the only company growing in response to anticipated demand from Electric Boat.
Chris Jewell, president of Bozrah-based Collins & Jewell Co., said his custom steel fabrication and industrial services firm is planning a major expansion tied to submarine work for Electric Boat and Virginia-based Newport News Shipbuilding.
The company currently operates from a roughly 32,000-square-foot Bozrah facility with 35-foot ceilings. This spring, it plans to construct a separate but connected 27,000-square-foot facility on an adjacent parcel. The new structure, expected to cost about $4 million, will rise to just under 50 feet to accommodate oversized components used in submarine construction.
“Everything you build for submarines is big, so we need to go taller,” Jewell said.
Collins & Jewell produces structural components, fixtures and training-related industrial systems for Electric Boat. About 80% of its business is tied to the submarine sector, Jewell said.
The company recently secured $2.7 million in supplier development funding through BlueForge Alliance, a nonprofit intermediary that administers federal programs aimed at strengthening the submarine industrial base. The grant will support the purchase of heavy-capacity equipment, including press brakes and other fabrication assets built to Electric Boat’s specifications.
The U.S. Navy-funded program requires recipients to commit a defined level of production capacity to defense manufacturing, and awards may be clawed back if contractual obligations are not met.
“We can’t refuse work,” Jewell said. “So, there’s no guarantee of getting contracts with this supplier development funding. We still have to bid it like anybody else, and EB can choose to give us work, or choose not to give us work.”
Jewell said increased submarine orders also benefit next-tier suppliers, including electrical subcontractors and piping firms that work with companies like Collins & Jewell.
However, he cautioned that entering the submarine supply chain presents significant hurdles, including investments in quality systems, cybersecurity compliance under Department of Defense standards, and extensive documentation to demonstrate that products meet Electric Boat’s requirements.
“Getting into the club is the hard part,” Jewell said. “So, for new suppliers, if they do have aspirations to help with the submarine sector, they’ve got to make sure their I’s are dotted and T’s are crossed.”
As chair of the Eastern Advanced Manufacturing Alliance, a nonprofit organization of more than 50 manufacturers focused on workforce and industry development, Jewell also noted that Electric Boat’s growth is intensifying labor pressures.
“We’re all fighting for the same people at the end of the day,” he said.
Despite those challenges, Jewell remains optimistic. Collins & Jewell previously doubled its footprint when it relocated from a 16,000-square-foot Norwich facility to Bozrah in 2013.
“We live by the philosophy that if you build it, they will come,” Jewell said. “And that truly paid off. I would imagine with our next expansion, that’s probably going to be the same case.”
